AdaptHealth Closes $487MM Acquisition of Solara and ActivStyle
JUL 7, 2020 - 6:42 am
AdaptHealth, a U.S. provider of home medical equipment, supplies and related services, closed the previously announced acquisitions of Solara Medical Supplies (Solara) and ActivStyle. The acquisitions were consummated for a combined total consideration of approximately $487 million, consisting of approximately $424.5 million in cash and $62.5 million in AdaptHealth Class A common stock.
Solara is a U.S. direct-to-patient provider of diabetes management supplies, including continuous glucose monitors (CGM), insulin pumps and other diabetic supplies. ActivStyle is a direct-to-consumer supplier that provides incontinence and urology products.
“These are highly strategic, complementary and accretive acquisitions,” Luke McGee, CEO of AdaptHealth, said. “We believe Solara will immediately establish AdaptHealth as a leader in the high-growth diabetes market and advances our goal to offer high-value services to people with chronic conditions in their homes. ActivStyle will add critical mass to important supply product categories; each company also brings to AdaptHealth a talented group of industry professionals.
“The addition of Solara and ActivStyle will enrich our direct-to-patient product offerings, create a single supply source for an expanded set of chronic care products and services, and increase our overall exposure to recurring supply sales.”
As previously announced, Steve Foreman, CEO of Solara; Gayle Devin, CEO of ActivStyle; and key members of their respective management teams joined AdaptHealth. Each company will continue to operate under its current name.
AdaptHealth funded the transactions and associated costs through a combination of incremental term loan borrowing under its existing credit agreement and equity investments of $190 million and $35 million, respectively, by One Equity Partners and funds managed by Deerfield Management. Brad Coppens, managing director of One Equity Partners, will join the board of AdaptHealth.
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